LIC’s Policyholders Can Now Avail Loans: Know the Process

Life Insurance Corporation of India (LIC) has been a cornerstone of the insurance sector in India, serving millions of policyholders nationwide with a wide range of insurance policies.

What many may not know is that LIC policyholders have the option to avail loans against their insurance policies in times of need.

- Advertisement -

This personal loan can be utilized for various purposes such as medical emergencies, education expenses, wedding arrangements, home construction, and more.

Know how to get a loan?

- Advertisement -

Taking a loan against an LIC policy involves a collateralized approach, wherein the loan amount is secured against the policy’s surrender value.

In case a policyholder defaults on the loan repayment, the loan amount is deducted from the policy’s maturity value.

- Advertisement -

To explore the possibility of obtaining a loan against your LIC policy, the e-services section on LIC’s website provides relevant information on the loan amount eligibility.

How much loan can be availed against one policy?

- Advertisement -

As per LIC’s guidelines, the loan amount is determined based on the surrender value of the policy.

Policyholders can avail a loan of up to 85% of their policy’s surrender value. However, a crucial point to remember is that a minimum of three years’ premiums must be paid on the policy to qualify for the loan facility.


If the premium payment period is less than three years, policyholders will not be eligible for the loan.

How to apply for a loan?


Applying for a loan against your LIC policy can be done both online and offline. For the convenience of online application, policyholders need to log in to their accounts through LIC’s e-services portal.

There, they can apply for the loan and upload their KYC documents. Subsequently, the physical copies of the same documents need to be sent to the nearest LIC office.

- Advertisement -

Once the documents are verified, the loan application is processed, and approval is granted within 3 to 5 days.

Alternatively, policyholders can also visit the LIC office in person to apply for the loan and submit their KYC documents for processing.


- Advertisement -

For LIC policyholders facing financial urgencies, availing a loan against their insurance policies can be a prudent option.

By understanding the loan process and eligibility criteria, policyholders can make informed decisions about accessing funds when needed.

Whether applying online or through traditional offline channels, LIC’s policyholders can tap into this financial support system to meet various life’s demands.


Please enter your comment!
Please enter your name here


More Articles